Court Restores $7.5B in Clean Energy Grants to 16 States

A federal court just handed communities across 16 states a major win, restoring $7.5 billion in clean energy funding that had been cancelled based on political affiliation.

The US District Court of the District of Columbia ruled on January 14, 2026, that the Department of Energy's decision to terminate 315 grants violated the Fifth Amendment's guarantee of equal protection under the law. The cancelled funding had supported 223 projects ranging from solar installations to energy efficiency programs.

The case came to light when officials admitted that nearly all affected projects were located in states that didn't vote for President Trump in 2024. According to court documents, government officials conceded that "a primary reason" for selecting which grants to cancel "was whether the grantee was located in a 'Blue State.'"

Six organizations brought the lawsuit, including the City of St. Paul, Minnesota, and the Environmental Defense Fund. All were either direct recipients or partners on environmental projects that suddenly lost their funding.

The judge ordered both sides to file a status report by January 16 to determine next steps, including whether permanent protections are needed and whether the government will cover attorney's fees.

The Ripple Effect

This ruling protects real projects serving real people. The restored funding supports community solar programs that lower electricity bills, energy efficiency upgrades that cut heating costs, and clean energy jobs in local economies.

Cities and nonprofits had already begun planning these projects, hiring workers, and making commitments to their communities. The sudden cancellation in October 2025 had thrown hundreds of initiatives into uncertainty.

"The court recognized that the Trump Department of Energy vindictively canceled projects for clean affordable energy," said Vickie Patton, General Counsel at the Environmental Defense Fund. She emphasized that the cancelled projects would have delivered "clean affordable energy for their pocketbooks and for healthier lives."

The Department of Energy disagreed with the decision, stating through a spokesperson that their review process "evaluated these awards individually" for responsible use of taxpayer dollars. However, the court found that political considerations, not project merit, drove the cancellations.

The ruling reinforces a fundamental American principle: federal programs must serve all states equally, regardless of political differences. Communities that applied for and won competitive grants based on project quality will now see those commitments honored.

This decision means solar installations will move forward, energy efficiency programs will launch as planned, and the American workers hired for these projects can get to work building a cleaner energy future for their neighbors.